Navigating the complexities of the insurance world can be especially troublesome for those who aren’t insurance experts. An insurance broker is someone who’s experienced in insurance – but what is it exactly that they do? How do they do it? What makes them so unique?
The world of insurance is exciting, invigorating, and incredibly rewarding. There are so many reasons to work with an insurance broker, whether as an organization, an individual, a family – and so many reasons to want to pursue a career path as an insurance broker. Let’s get into what an insurance broker is, including the key definition, what they do, and how they do it.
Who They Are
In essence, an insurance broker is a knowledgeable professional who behaves as an intermediary between businesses, individuals, and the insurance carrier (or provider.) In each province of Canada, including Quebec, an insurance broker must be licensed. They work on behalf of their clients and represent their client’s best interests when acquiring insurance coverage. Insurance brokers can either be independent professionals or they may work for larger insurance brokerages.
Note: an insurance agent is not an insurance broker. Agents work for a single insurance carrier or company, where a broker might work for a brokerage but represent numerous carriers, and therefore sell from a variety of sources.
What They Do
Insurance brokers do more than simply “sell insurance.” In fact, they perform a range of insurance-specific tasks that are essential to ensuring the financial protection of their clients, and acquiring the most suitable coverage for their situation. An insurance broker has the following responsibilities:
Defining Insurance Needs
Each individual, group, or organization will have different insurance needs. An insurance broker must evaluate their clients’ specific insurance requirements, taking time to understand their clients’ liabilities, assets, risks, and budget. They undergo a thorough analysis to best identify the appropriate coverage types and levels of coverage required for that client.
Researching Options
Brokers have access to a network of different carriers, and thus (once they’ve fully understood the client’s insurance needs) can conduct extensive research to compare between options from different insurance carriers. They’ll consider factors like coverage limits, premiums, deductibles, and other additional benefits that may be of note to the client.
Providing Recommendations
Insurance brokers may also provide advice or recommendations to clients. They’ll offer advice based on their analysis and research of that client’s risk and offerings, explaining what is available to them and what are the pros and cons of each decision. Insurance brokers use the expertise that they have gained through their time in the insurance sphere to guide their clients. They are the “go-to” insurance resource that clients can use for the best comprehensive coverage.
How They Do It
Every insurance broker follows their own systematic process to guarantee that their clients’ insurance requirements are sufficiently met. The steps involved may include:
- Initial Consultation. Insurance brokers will typically begin their process by having a first meeting with clients, with intents to discuss insurance requirements and get to know them. They will learn about the client’s risks, coverage needs, and assets. This allows them to gain an initial understanding of the client’s insurance objectives.
- Analysis. Once the consultation has been completed, the insurance broker may conduct market analysis. They do this by evaluating their relevant insurance providers, exploring the insurance market, comparing policies, and analyzing pricing structures. This market analysis better enables brokers to pinpoint insurance options that best match their clients’ budgets and needs.
- Presentation. Usually at this point, an insurance broker will compile all their research and analysis in a detailed proposal – usually a presentation, which highlights recommended coverage, premiums, details, packages, and additional information that might be relevant to that client’s needs. Brokers may also explain additional rationale behind their recommendations, to further assist the client’s interests, and can answer any questions at this point that the client may have.
- Selection. Once the client has chosen their preferred insurance policies, insurance brokers will facilitate the “policy placement process,” coordinating with providers, handling paperwork, and issuing policies correctly. Even after the policy has been purchased by the client, insurance brokers will continue to advise the client, offering assistance in managing policy renewals, supporting with claims advice, and addressing any policy-relevant inquiries.
AssurUni: Canada’s Hub for Skilled Insurance Brokers
Being an insurance broker is so incredibly rewarding. Not only does it offer the opportunity to build and expand your very own business, but it allows you to directly aid your local community and support businesses, individuals, and families alike!
Here at AssurUni, we have a proven track record of mentoring and training multiple insurance brokers and have bene continuing to do so with incredible success since our initial inception. Now, we are expanding our offerings to aspiring entrepreneurs who might be looking for a shift of career path outside of the industry, who are on the hunt for a lucrative business opportunity that presents minimal overhead costs. Join AssurUni, and let’s talk today!